台灣國際航電 (GRMN) 2024 Q3 法說會逐字稿

Thank you for standing by, and welcome to the Garmin Limited third-quarter 2024 conference call. (Operator Instructions)

感謝您的耐心等待，歡迎參加 Garmin Limited 2024 年第三季電話會議。 （操作員說明）

I'd now like to turn the call over to Teri Seck, Director of Investor Relations. You may begin.

我現在想將電話轉給投資者關係總監 Teri Seck。你可以開始了。

Good morning. We would like to welcome you to Garmin Limited's Third Quarter 2024 Earnings Call. Please note that the earnings press release and related slides are available at Garmin's Investor Relations site on the Internet at www.garmin.com/stock. An archive of the webcast and related transcript will also be available on our website. This earnings call includes projections and other forward-looking statements regarding Garmin Ltd.

早安.歡迎您參加 Garmin Limited 的 2024 年第三季財報電話會議。請注意，收益新聞稿和相關投影片可在網路上的 Garmin 投資者關係網站 www.garmin.com/stock 上取得。我們的網站上也將提供網路廣播和相關文字記錄的存檔。本次財報電話會議包括有關 Garmin Ltd. 的預測和其他前瞻性聲明。

and its business. . Any statements regarding our future financial position, revenue segment growth rates, earnings, gross margins, operating margins, future dividends or share repurchases, market shares, product introductions, future demand for our products and plans and objectives are forward-looking statements. The forward-looking events and circumstances discussed in this earnings call may not occur, and actual results differ materially as a result of risk factors affecting Garmin.

及其業務。 。任何有關我們未來財務狀況、收入部門成長率、收益、毛利率、營業利潤、未來股息或股票回購、市場份額、產品介紹、我們產品的未來需求以及計劃和目標的陳述均為前瞻性陳述。本次財報電話會議中討論的前瞻性事件和情況可能不會發生，並且由於影響 Garmin 的風險因素，實際結果存在重大差異。

Information concerning these risk factors is contained in our Form 10-K filed with the Securities and Exchange Commission. Presenting on behalf of Garmin Limited this morning are Clay Pemble, President and Chief Executive Officer; and Doug Boessen, Chief Financial Officer and Treasurer.

有關這些風險因素的資訊包含在我們向美國證券交易委員會提交的 10-K 表中。今天早上代表 Garmin Limited 出席會議的是總裁兼執行長 Clay Pemble；財務長兼財務長 Doug Boessen。

At this time, I would like to turn the call over to Chris Pemble.

此時，我想將電話轉給 Chris Pemble。

Thank you, Terry, and good morning, everyone. As announced earlier today, Garmin delivered another quarter of impressive financial results as our products resonate with customers, and we leverage growth opportunities across market segments and geographies. Consolidated revenue increased 24% to $1.59 billion a new third quarter record, and we achieved record revenue in all 5 business segments. Gross margin expanded 300 basis points to 60%.

謝謝你，特里，大家早安。正如今天早些時候宣布的那樣，隨著我們的產品與客戶產生共鳴，並且我們利用跨細分市場和地區的成長機會，Garmin 又實現了令人印象深刻的季度財務業績。綜合營收成長 24%，達到 15.9 億美元，創下第三季新紀錄，我們在所有 5 個業務部門都實現了創紀錄的收入。毛利率擴大 300 個基點至 60%。

Operating income increased 62% year-over-year, and operating margin expanded 640 basis points to 27.6%, reflecting both the higher gross margin as well as favorable operational leverage across the business. We reported pro forma EPS of $1.99, up 41% year-over-year. Some are wondering how we have consistently delivered strong results when the financial health of the consumer is the subject of intent debate. The straightforward answer is that there is no single profile of the Garmin customer.

營業收入年增 62%，營業利潤率擴大 640 個基點至 27.6%，反映了較高的毛利率以及整個業務有利的營運槓桿。我們預計每股收益為 1.99 美元，年增 41%。有些人想知道，當消費者的財務健康成為人們爭論的焦點時，我們如何始終如一地取得強勁的業績。簡單的答案是 Garmin 客戶沒有單一的資料。

And therefore, our results are not strictly correlated to broad generalizations of consumer behavior. Our business is highly diversified in many dimensions from market segments to product categories within segments, each targeting different consumers. Additionally, our business is global in nature, allowing us to leverage growth opportunities wherever they exist.

因此，我們的結果與消費者行為的廣泛概括並不嚴格相關。我們的業務在多個維度上高度多元化，從細分市場到細分市場內的產品類別，每個維度都針對不同的消費者。此外，我們的業務本質上是全球性的，這使我們能夠利用任何存在的成長機會。

And finally, our products offer essential utility and unique differentiators that separate them from ordinary discretionary items. Another factor in our strong performance is that our products are clearly resonating with customers. For example, our market share in marine increased as measured by organic garment sales versus our competitors. Additionally, our market share in advanced wearables increased. According to the most recent IDC data covering shipments through June of 2024, Garmin's global market share in advanced wearables increased over 200 basis points year-over-year, and we were the only global brand experiencing growth in shipments.

最後，我們的產品提供了必要的實用性和獨特的區別，將它們與普通的可自由支配的物品區分開來。我們表現強勁的另一個因素是我們的產品明顯引起了客戶的共鳴。例如，與我們的競爭對手相比，以有機服裝銷售額衡量，我們在海洋領域的市佔率有所增加。此外，我們在先進穿戴裝置方面的市佔率有所增加。根據涵蓋截至 2024 年 6 月出貨量的 IDC 最新數據，Garmin 在高級可穿戴設備領域的全球市場份額同比增長超過 200 個基點，並且我們是唯一一個出貨量增長的全球品牌。

According to IDC, we are now the number two advanced wearable brand in Europe and globally, we are #3. These are remarkable outcomes considering the highly competitive and fragmented nature of this market. We believe this is a direct reflection of the strength of our products and brilliant execution by our global team. Given our strong performance for the first 3 quarters of the year, we are updating our full year 2024 guidance. We anticipate revenue of approximately $6.12 billion and pro forma EPS of $6.85.

根據 IDC 的數據，我們現在是歐洲和全球第二大先進穿戴品牌，排名第三。考慮到這個市場的高度競爭和分散性，這些成果是顯著的。我們相信，這直接反映了我們產品的實力和我們全球團隊出色的執行力。鑑於我們今年前 3 季的強勁表現，我們正在更新 2024 年全年指引。我們預計營收約為 61.2 億美元，預計每股收益為 6.85 美元。

Doug will discuss our financial results and outlook in greater detail in a few minutes, but first, I'll provide a few remarks on the performance of each business segment. Starting with fitness. Revenue increased 31% to $464 million, with all categories contributing to growth and notably as our running and advanced wellness products resonate with customers. Gross margin was 61%, a 710 basis point improvement over the prior year, driven by lower product cost

道格將在幾分鐘內更詳細地討論我們的財務表現和前景，但首先，我將對每個業務部門的業績發表一些評論。從健身開始。收入成長了 31%，達到 4.64 億美元，所有類別都對成長做出了貢獻，尤其是我們的跑步和高級健康產品引起了客戶的共鳴。由於產品成本下降，毛利率為 61%，比前一年提高 710 個基點

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mix. Operating income nearly doubled year-over-year, and operating margin expanded by more than 1,000 basis points to 32%, reflecting both higher gross margin and favorable operating leverage in the segment. During the quarter, we celebrated the tenth anniversary of Garmin Health, which leverages our extensive wearable portfolio and high-quality sensor data to support corporate wellness, population health and patient monitoring initiatives. We also hosted the annual Garmin Health Summit to recognize innovative digital health solutions that utilize Garmin products. Given the strong performance of the Fitness segment

混合。營業收入較去年同期成長近一倍，營業利潤率成長超過 1,000 個基點，達到 32%，反映出該部門較高的毛利率和有利的營業槓桿。本季度，我們慶祝了 Garmin Health 成立十週年，該公司利用我們廣泛的可穿戴產品組合和高品質的傳感器數據來支持企業健康、人口健康和患者監測計劃。我們也舉辦了年度 Garmin 健康高峰會，以表彰利用 Garmin 產品的創新數位健康解決方案。鑑於健身細分市場的強勁表現

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moving to outdoor. Revenue increased 21% to $527 million, driven primarily by venture watches following the highly successful launch of the new fenix 8 series. Gross margin was 68%, a 570 basis point improvement over the prior year quarter and was favorably impacted by lower product costs, and a higher mix of revenue from adventure watches. Operating income increased 53% year-over-year, and operating margin expanded 820 basis points to 40%, reflecting both higher gross margin and favorable operating leverage in the segment.

搬到室外。營收成長 21% 至 5.27 億美元，主要由全新 fenix 8 系列成功推出後的創投手錶推動。毛利率為 68%，比去年同期提高 570 個基點，受到產品成本下降和冒險手錶收入增加的有利影響。營業收入年增 53%，營業利潤率擴大 820 個基點至 40%，反映出該部門較高的毛利率和有利的營業槓桿。

During the quarter, we launched the highly anticipated fenix 7 series as well as the Enduro 3. The fenix 8 series features a brilliant AMOLED display, cutting-edge features, a built-in speaker microphone and an LED flashlight across all models. The Enduro 3 weighs only 63 grams that offers rich features for endurance athletes, along with class-leading battery life up to 320 hours in GPS tracking mode, and up to 3 months in smartwatch mode using built-in solar charging technology.

本季度，我們推出了備受期待的 fenix 7 系列和 Enduro 3。 Enduro 3 重量僅63 克，為耐力運動員提供了豐富的功能，並且在GPS 追蹤模式下電池續航時間長達320 小時，在使用內建太陽能充電技術的智慧手錶模式下電池續航時間長達3 個月。

We also launched the Enreach Messenger Plus, our first satellite communicator to offer photo and voice messaging expanding our customers' ability to stay in touch while roaming in areas of limited or nonexistent cellular coverage. Given the strong performance of the Outdoor segment in the third quarter, and the positive response following the recent fenix 7 Series launch, we are raising our 2024 revenue growth estimate to 13%. Looking next to Aviation, revenue increased 3% to $205 million, driven primarily by aftermarket product categories. Gross and operating margins were 75% and 22%, respectively, resulting in operating income of $44 million, a decrease of 10% year-over-year driven by increased R&D spending to develop new product and certify new aircraft platforms.

我們還推出了 Enreach Messenger Plus，這是我們的首款衛星通訊器，可提供照片和語音訊息傳遞，從而擴展了客戶在蜂窩網路覆蓋有限或不存在的區域漫遊時保持聯繫的能力。鑑於第三季戶外細分市場的強勁表現，以及近期 fenix 7 系列推出後的正面反響，我們將 2024 年營收成長預期上調至 13%。接下來是航空領域，營收成長了 3%，達到 2.05 億美元，這主要是由售後市場產品類別推動的。毛利率和營業利潤率分別為 75% 和 22%，營業收入為 4,400 萬美元，年減 10%，這是由於開發新產品和認證新飛機平台的研發支出增加所致。

We recently announced our new G3000 Prime, which redefines the integrated flight deck experience with edge to edge all touch screens and a highly flexible open architecture that seamlessly adapts to serve a broad and dynamic market. Textron Aviation recently announced that the G3000 Prime will be included in the upcoming CJ4 Gen 3 business jet. During the quarter, we announced an important new safety feature called Runway Occupancy awareness, which uses ADS-B information to help reduce the risk of runway incursions, and provide added confidence for pilots navigating busy and complex airports.

我們最近發布了全新的 G3000 Prime，它重新定義了整合式駕駛艙體驗，採用無邊全觸控螢幕和高度靈活的開放式架構，可無縫適應服務於廣闊且充滿活力的市場。德事隆航空最近宣布，G3000 Prime 將被納入即將推出的 CJ4 Gen 3 公務機。在本季度，我們宣布了一項名為「跑道佔用感知」的重要新安全功能，該功能使用ADS-B 資訊來幫助降低跑道入侵風險，並為飛行員在繁忙而複雜的機場中航行提供更多信心。

Garmin is the first to bring runway occupancy awareness to market. Also during the quarter, our co-founders, Dr. Min Kao and the late Gary Barrel were enshrined into the National Aviation Hall of Fame. This tremendous honor celebrates their pioneering work, developing products that revolutionized the aviation industry. The aviation segment has performed as expected so far this year, and we are maintaining our estimate of flat revenue for the full year 2024.

Garmin 是第一個將跑道佔用意識推向市場的公司。同樣在本季度，我們的聯合創始人 Min Kao 博士和已故的 Gary Barrel 被載入國家航空名人堂。這項巨大的榮譽旨在表彰他們的開創性工作，他們開發的產品徹底改變了航空業。今年到目前為止，航空部門的表現符合預期，我們維持 2024 年全年營收持平的估計。

Turning to marine, revenue increased 22% to $222 million, primarily driven by new revenue from JL Audio. Excluding JL Audio, revenue increased approximately 7%, which is ahead of the industry trends pointing to share gains in the market. Gross margin was 55%, a 290 basis point improvement over the prior year quarter and was favorably impacted by lower product cost. Operating income increased 59% year-over-year and operating margin expanded 390 basis points to 17%, reflecting both higher gross margin and favorable operating leverage in the segment.

船舶領域的收入成長了 22%，達到 2.22 億美元，這主要是由 JL Audio 的新收入推動的。不包括 JL Audio，營收成長約 7%，領先市場佔有率成長的產業趨勢。毛利率為 55%，比去年同期提高 290 個基點，這得益於產品成本下降的有利影響。營業收入年增 59%，營業利潤率擴大 390 個基點至 17%，反映出該部門較高的毛利率和有利的營業槓桿。

During the quarter, we received several awards, including being named the 2024 Manufacturer of the Year by the National Marine Electronics Association for the tenth consecutive year, along with 6 Product of Excellence awards or a total of 63 over the last decade. We were also recognized as the #1 most innovative marine company for the second consecutive year by sounding straight only, a leading publication for the recreational boating industry. Sounding trade only considered both the strength of our products as well as our culture and business practices, which makes this recognition especially meaningful to us.

在本季度，我們獲得了多項獎項，包括連續第十年被美國國家海洋電子協會評為 2024 年度製造商，以及 6 項卓越產品獎（過去 10 年總計 63 項）。我們也連續第二年被休閒划船行業領先出版物《sounding only》評為最具創新力的船舶公司第一名。健全的貿易只考慮我們產品的實力以及我們的文化和商業實踐，這使得這種認可對我們來說特別有意義。

Last week, we announced the acquisition of [indiscernible], a leader in marine LED lighting solutions, which broadens our product portfolio and enhances our ability to seamlessly integrate technologies on the boat. The Marine segment has performed as expected so far this year, and we are maintaining our growth estimate of 15% for the full year 2024.

上週，我們宣布收購[音訊不清楚]，這是一家船用 LED 照明解決方案的領導者，這擴大了我們的產品組合，並增強了我們在船上無縫整合技術的能力。今年到目前為止，船舶業務的表現符合預期，我們維持 2024 年全年 15% 的成長預期。

Moving finally to the auto OEM segment. Revenue increased $53 million to $169 million, primarily driven by growth in domain controllers. Gross margin was 20% and the operating loss narrowed to $1 million as efficiencies improved with higher sales volumes. During the quarter, we successfully launched the Garmin Design domain controllers across all remaining BMW car lines. Our auto OEM segment has performed as expected so far this year.

最後轉向汽車 OEM 領域。收入增加了 5,300 萬美元，達到 1.69 億美元，這主要是由網域控制器的成長所推動的。由於效率隨著銷售量的增加而提高，毛利率為 20%，營業虧損收窄至 100 萬美元。本季度，我們成功在所有剩餘的 BMW 汽車系列中推出了 Garmin Design 網域控制器。今年到目前為止，我們的汽車 OEM 部門的表現符合預期。

However, it has been widely reported that the outlook of major automakers is softening.

然而，廣泛報道稱主要汽車製造商的前景正在疲軟。

With this in mind, we are lowering our full year 2024 revenue growth estimate to 40%. That concludes my remarks. Next, Doug will walk you through additional details on our financial results. Doug?

考慮到這一點，我們將 2024 年全年營收成長預期下調至 40%。我的發言到此結束。接下來，道格將向您介紹有關我們財務業績的更多詳細資訊。道格？

Thanks, Cliff. Good morning, everyone. I'll begin by reviewing our third quarter financial results, provide comments on the balance sheet, cash flow statement, taxes, and updated guidance. Post a revenue of $1.586 billion for the third quarter, representing a 24% increase year-over-year. Gross margin increased to 60%, 300 basis point increase due to lower product costs and favorable product mix in certain segments.

謝謝，克里夫。大家早安。我將首先回顧我們第三季度的財務業績，提供對資產負債表、現金流量表、稅收和最新指導的評論。第三季營收為15.86億美元，年增24%。由於產品成本下降以及某些細分市場有利的產品組合，毛利率增長至 60%，增長了 300 個基點。

Operating expense as a percentage of sales was 32.4%, a 350 basis point decrease. Operating income was $437 million, [ 62% ] increase. Operating margin was 27.6% and a 640 basis point increase to achieve leverage on our strong sales and improved gross margins. Our GAAP EPS was $2.07, and pro forma EPS was $1.99. Next, look at our third quarter revenue by segment and geography.

營運費用佔銷售額的百分比為 32.4%，下降 350 個基點。營業收入為 4.37 億美元，成長 [62%]。營業利潤率為 27.6%，成長了 640 個基點，以充分利用我們強勁的銷售和毛利率的提高。我們的 GAAP 每股收益為 2.07 美元，預計每股收益為 1.99 美元。接下來，按細分市場和地理查看我們第三季的收入。

During the third quarter, we achieved record revenue on a consolidated basis for each of our 5 segments. We achieved double-digit growth in 4 of our 5 segments, led by the auto OEM segment with 53% growth. The Fitness, Marine and Outdoor segments have 31%, 22% and 21% growth, respectively.

第三季度，我們的 5 個細分市場的綜合收入均創歷史新高。我們在 5 個細分市場中有 4 個實現了兩位數成長，其中汽車 OEM 細分市場成長了 53%。健身、航海和戶外細分市場分別成長 31%、22% 和 21%。

By geography, we achieved double growth across all 4 regions, led by the EMEA region with 40% growth, followed by the APAC region with 18% growth in the Americas region with 15% growth. Looking next, operating expenses. Third quarter operating expense increased by $56 million or 12%. Research and development and SG&A each increased approximately $28 million. Year-over-year increases were primarily due to personnel-related expenses.

按地理劃分，我們在所有 4 個地區都實現了雙倍增長，其中歐洲、中東和非洲地區領先，增長 40%，其次是亞太地區，增長 18%，美洲地區增長 15%。接下來是營運費用。第三季營運費用增加 5,600 萬美元，成長 12%。研發和銷售、一般管理費用各增加約 2,800 萬美元。年比增長主要是由於人事相關費用。

A few highlights on the balance sheet, cash flow statement and taxes. Ended the quarter with cash and marketable securities of approximately $3.5 billion. Accounts receivable increased both year-over-year sequentially to $922 million, following strong sales in the third quarter. Inventory balance increased year-over-year sequentially to approximately $1.5 billion. In the third quarter of 2024, we generated free cash flow of $219 million, [ $19 million ]decrease from the prior year quarter.

資產負債表、現金流量表和稅收的一些要點。截至本季末，現金和有價證券約為 35 億美元。繼第三季強勁的銷售之後，應收帳款年增至 9.22 億美元。庫存餘額較去年同期成長至約 15 億美元。 2024 年第三季度，我們產生了 2.19 億美元的自由現金流，比去年同期減少了[1,900 萬美元]。

Capital expenditures for third quarter 2024 were $39 million, approximately $7 million lower than the prior year quarter.

2024 年第三季的資本支出為 3,900 萬美元，比去年同期減少約 700 萬美元。

We expect full year 2024 free cash flow to be approximately $1.1 billion capital expenditures approximately $250 million. During the third quarter of 2024, we paid dividends of approximately $144 million and purchased $20 million of company stock. At quarter end, we had approximately $270 million remaining in the share repurchase program, which is authorized through December 2026.

我們預計 2024 年全年自由現金流約為 11 億美元，資本支出約 2.5 億美元。 2024 年第三季度，我們支付了約 1.44 億美元的股息，並購買了 2,000 萬美元的公司股票。截至季末，我們的股票回購計畫尚剩餘約 2.7 億美元，該計畫授權至 2026 年 12 月。

Core effective tax rate of 17.9% compared to pro forma effective tax rate of 7.2% in the prior year quarter. Increase in effective tax rate is primarily due to the increase the combined Switzerland tax rate in response to global minimum tax requirements.

核心有效稅率為 17.9%，而去年同期的預期有效稅率為 7.2%。有效稅率的增加主要是由於瑞士為滿足全球最低稅收要求而提高了綜合稅率。

Turning next to our full year guidance. Estimated revenue approximately $6.12 billion compared to our previous guidance of $5.95 billion. We expect gross margin to be approximately 58.5%, higher than our previous guidance, 57% due to year-to-date performance. We expect an operating margin of approximately 24% compared to our previous guidance of 21.3%. Also, we expect a pro forma effective tax rate of 16.5% higher than our previous guidance of 16% to projected full year income mix by tax jurisdiction.

接下來是我們的全年指導。預計收入約為 61.2 億美元，而我們先前的指引為 59.5 億美元。我們預計毛利率約為 58.5%，高於我們先前的指導，由於今年迄今的業績，毛利率為 57%。我們預計營業利潤率約為 24%，而先前的指導值為 21.3%。此外，我們預計按稅收管轄區預測的全年收入組合的預計有效稅率將比我們先前指導的 16% 高出 16.5%。

This results expect a pro forma earnings per share of approximately $6.85, an increase of $0.85 the previous guidance of $6.

這一結果預計預計每股收益約為 6.85 美元，比先前指導的 6 美元增加了 0.85 美元。

This concludes our formal remarks. Rob, could you please open the line for Q&A?

我們的正式發言到此結束。羅布，您能打開問答線嗎？

(Operator Instructions)

（操作員說明）

Ben Bollin, Cleveland Research.

本‧博林，克利夫蘭研究中心。

Cliff, I was hoping you could share a little thought on what you see as the underlying drivers within wearables. Could you speak to how you think about the growth of the installed base versus refresh? And what you've seen with some of these recent launch in the (technical difficulty)

Cliff，我希望您能分享您對穿戴式裝置潛在驅動因素的一些想法。您能否談談您如何看待安裝量的成長與更新？以及您在最近推出的一些產品中所看到的（技術難度）

Yes. So Ben, as we remarked in our prepared statements, the drivers in wearables is that we're a very unique player in the market. We offer a lot of different products across many different use cases. And so we're able to find ways to be successful across the whole market is our products really resonate with lifestyles and activities that our customers want to do. In terms of installed base, our current registration trends still point to the majority of our new -- of our users being new -- users being new to Garmin, which is a great thing.

是的。因此，本，正如我們在準備好的聲明中所說，穿戴式裝置的驅動因素是我們是市場上非常獨特的參與者。我們在許多不同的用例中提供許多不同的產品。因此，我們能夠找到在整個市場中取得成功的方法，因為我們的產品真正與客戶想要的生活方式和活動產生共鳴。就安裝基礎而言，我們目前的註冊趨勢仍然表明我們的大多數新用戶（我們的新用戶）都是 Garmin 的新用戶，這是一件好事。

So we're seeing that grow, which is good. And then in terms of the recent launches, as I mentioned, the fenix 8 series was very well received by the market, and we're continuing to fill demand for that product as it rolls out across all of our retail channels.

所以我們看到這種成長，這是好事。然後就最近推出的產品而言，正如我所提到的，fenix 8 系列深受市場歡迎，隨著該產品在我們所有零售通路的推出，我們將繼續滿足對該產品的需求。

And there were also a number of mentions on the stronger gross margins related to lower product costs. Could you provide some color on what it is that you're seeing or what you're doing to see those benefits?

還有很多人提到與較低的產品成本相關的更高的毛利率。您能否提供一些資訊來說明您所看到的情況或您正在採取哪些措施來實現這些好處？

I think there's quite a few moving pieces in the product costs. One is pure materials costs, which we're definitely seeing some benefit there of the scale of our business across all of our segments. But also we're getting some help from the Taiwan dollar and efficiencies in our factory operations as our scale has increased significantly.

我認為產品成本中有相當多的變動因素。一是純粹的材料成本，我們肯定會看到我們所有部門的業務規模帶來的一些好處。但隨著我們規模的顯著擴大，我們也從新台幣和工廠營運效率中得到了一些幫助。

The last one for me. Interested in any thoughts you have going into the holidays about how you view retailer commitments to inventory levels into the holidays. Any thoughts on what it is that they're seeing versus prior years?

對我來說最後一張。有興趣了解您在假期期間對如何看待零售商對假期庫存水平的承諾的任何想法。對於他們所看到的東西與前幾年相比有何想法？

Retailers are telling us that they're eager to take in our products. They're planning for promotions, the retail channel appears to be very clean, especially as we transition some of our product lines like the fenix 8. So I believe we're in a good position and that's what we're hearing from our retail partners.

零售商告訴我們，他們渴望購買我們的產品。他們正在計劃促銷，零售通路似乎非常乾淨，特別是當我們過渡一些產品線（例如 fenix 8）時。

Erik Woodring, Morgan Stanley

艾瑞克‧伍德林，摩根士丹利

Two, if I may. Just to start, Cliff, really impressive on fitness and outdoor, especially on the gross and operating margin side, you're posting margins that we haven't necessarily seen before for these segments. So just curious, from your perspective, if we put aside the cost downs that you alluded to, how much of this is your pricing strategy really flowing through to margins? And really, the question I'm getting at is how sustainable are these margin levels as we think about moving from some of these moving on from some of these new product launches, can you sustain these margins? Are these abnormally high?

如果可以的話，兩個。首先，克里夫，在健身和戶外方面確實令人印象深刻，特別是在毛利率和營業利潤方面，您發布的利潤率是我們以前在這些細分市場中從未見過的。所以只是好奇，從您的角度來看，如果我們拋開您提到的成本下降，您的定價策略有多少真正轉化為利潤？事實上，我要問的問題是，當我們考慮從其中一些產品的發布轉向一些新產品的推出時，這些利潤水平的可持續性如何，你能維持這些利潤嗎？這些是否異常高？

Could you just maybe help us unpack that? And then I just have a quick follow-up.

你能幫我們解壓一下嗎？然後我就進行快速跟進。

Yes. I think it's probably difficult to put aside cost down because that's obviously an important way that companies continue to reinforce their margin structure. So we're working very hard on that. and each new design, we try to make gains in terms of the efficiency of the designs as well as the component costs. But in terms of sustainability, I think that's one of those questions that everyone is going to have an opinion on.

是的。我認為把降低成本放在一邊可能很困難，因為這顯然是公司繼續強化利潤結構的重要方式。所以我們正在這方面非常努力。對於每一個新設計，我們都試圖在設計效率和組件成本上取得效益。但就永續性而言，我認為這是每個人都會有意見的問題之一。

What we focus on is creating products with unique differentiators that allow us to have premium pricing and offer things that our competitors don't. So that's going to continue to be our recipe going forward.

我們專注於創造具有獨特差異化的產品，使我們能夠擁有優質的定價並提供競爭對手所沒有的東西。所以這將繼續成為我們前進的秘訣。

Okay. I appreciate that. And then just as a follow-up. Obviously, you alluded to the auto OEM market backdrop weakness. You had previously set that $800 million target for auto OEM in 2025.

好的。我很欣賞這一點。然後作為後續行動。顯然，您提到了汽車原始設備製造商市場的疲軟背景。您之前為汽車 OEM 設定了 2025 年 8 億美元的目標。

And just given your comments on OEM softness, does that target change at all? Does it change either the magnitude or the timing of that $800 million kind of goal? And then second to that, does it have any impact on any of the new OEM contracts that (technical difficulty)

剛剛給了您對 OEM 軟度的評論，這個目標有變化嗎？它會改變 8 億美元目標的規模或時間嗎？其次，它對任何新的 OEM 合約是否有任何影響（技術難度）

To next year, we really aren't ready to comment on that, although obviously, the trends in the car industry are softer than they used to be. So we'll look at that and provide an update when we introduce our 2025 outlook. In terms of impact on our new programs, I would say, at this point, too early to say. I think some of those are rolling out beyond 2025. And so I would expect as the economy evolves, as people believe that it will with lower interest rates that it could get better, and the outlook would improve.

到明年，我們確實還沒有準備好對此發表評論，儘管顯然汽車行業的趨勢比以前更加疲軟。因此，我們將對此進行研究，並在介紹 2025 年展望時提供最新資訊。就對我們新計劃的影響而言，我想說，現在說還為時過早。我認為其中一些計劃將在 2025 年之後推出。

Ivan Feinseth, Tigress Financial Partners.

Ivan Feinseth，Tigress Financial Partners。

Congratulations on another great quarter. It's phenomenal. With the recent availability of some paid apps on the Connect IQ platform, what kind of uptake are you seeing? And also with the recent introduction of the expanded in reach the connected subscriptions and some of the downloads of let's say, Messenger and some of the new features in Messenger as you kind of grow out this app ecosystem. What kind of uptake are you seeing?

恭喜又一個偉大的季度。這是驚人的。最近 Connect IQ 平台上推出了一些付費應用程序，您看到了什麼樣的使用情況？此外，隨著最近推出了擴展的連接訂閱和 Messenger 的一些下載，以及 Messenger 中的一些新功能，隨著您在這個應用程式生態系統中的發展。您看到了什麼樣的吸收率？

And at what point do you think you would start to give some indication as the revenue that's coming from some of these subscriptions?

您認為什麼時候您會開始提供一些關於來自其中一些訂閱的收入的指示？

Yes. Ivan, in terms of the PaaS and some of the things that you've seen recently on our store, we view these as incremental as they bring value to customers. And so those are enhancers to our overall revenue and margin structure as we roll more of that out. Expanded in reach, we've been excited about that being able to have the higher bandwidth messaging and picture and voice sharing, which is great for people that go out in areas where cellular coverage is just really poor. So we expect that to be completely incremental in terms of the use case for the product, although it's early days and probably not a lot of share in terms of what the early results are so far.

是的。 Ivan，就 PaaS 以及您最近在我們商店中看到的一些東西而言，我們認為這些是增量的，因為它們為客戶帶來了價值。因此，隨著我們推出更多的產品，這些都將增強我們的整體收入和利潤結構。隨著覆蓋範圍的擴大，我們對能夠擁有更高頻寬的訊息傳遞以及圖片和語音共享感到興奮，這對於在蜂窩覆蓋非常差的地區外出的人來說非常有用。因此，我們預計，就產品的用例而言，這將是完全增量的，儘管現在還處於早期階段，而且就到目前為止的早期結果而言，可能沒有太多份額。

In terms of the messenger specifically, it's a great product, like I said, very new, and so we're just now starting to see it roll out and being used by customers.

具體就信使而言，正如我所說，它是一個很棒的產品，非常新，所以我們現在才開始看到它推出並被客戶使用。

And then what kind of reception are you seeing to the new introduction of your new dash cams. And if you see a lot of what's going on out there, there seems to be an increasing demand or people are finding that these are becoming a necessary item. What kind of growth potential do you see going forward on those?

那麼您對新推出的新型行車記錄器有何看法？如果你看到外面發生的很多事情，需求似乎在增加，或者人們發現這些正在成為必需品。您認為這些未來有什麼樣的成長潛力？

Yes. The Dashcam market is very mature, but the market did receive our new product releases very well. We've focused on providing Dashcam functionality that's superior to others, including a heavy focus on quality optics and a broad range of use cases from daytime to night time. So I think the market appreciates that, and we've had a favorable response.

是的。行車記錄器市場已經非常成熟，但市場對我們發布的新產品的反應確實很好。我們專注於提供優於其他行車記錄器的功能，包括高度關注優質光學元件和從白天到夜間的廣泛用例。所以我認為市場對此表示讚賞，我們也得到了正面的回應。

Jordan Lyonnais, Bank of America.

喬丹·里昂，美國銀行。

On the Aero side, are you guys seeing any impact from the strike and reramping up now that the strike is over for (inaudible)

在航空方面，你們是否看到罷工帶來的任何影響並在罷工結束後重新加速（聽不清楚）

I think the strike probably had some small near-term effects as Textron was unable to deliver their plan in terms of aircraft, but I think they're working hard now to go back to normal. And so we don't anticipate any long-term effects on that.

我認為這次罷工可能會產生一些小的短期影響，因為德事隆無法交付他們的飛機計劃，但我認為他們現在正在努力恢復正常。因此，我們預計不會對此產生任何長期影響。

Got it. Okay. And then on the guidance raise from this quarter versus last quarter, because it was so strong, what is giving more confidence in the visibility that you guys have into 4Q now versus this past quarter?

知道了。好的。然後，關於本季與上季相比的指引，因為它是如此強勁，與上個季度相比，是什麼讓你們對現在第四季的可見度更有信心？

I think as we move along through the year, of course, we get more confidence in the last quarter. A lot of the plans with retailers don't materialize until sometime in Q2 or Q3. And so with a more complete picture now, of course, we can be more confident in the fourth quarter.

當然，我認為隨著這一年的進展，我們對最後一個季度會更有信心。與零售商的許多計劃要到第二季或第三季的某個時候才會實現。當然，現在有了更全面的了解，我們對第四季就會更有信心。

Noah Zatzkin, KeyBanc Capital Markets.

Noah Zatzkin，KeyBanc 資本市場。

Maybe just a couple on the Marine strength. I guess first on LumiSure, have you quantified how large that business is in general?

也許只是海軍陸戰隊的幾個人。我想先關於 LumiSure，您是否量化了該業務的整體規模？

Yes. I think the LumiSure and marine lighting in general, is an incremental business to our Marine segment. But an important 1 because it's another component on the boat that people want to have that we can provide and also integrate with our [indiscernible] systems around the boat.

是的。我認為 LumiSure 和海洋照明總體而言是我們海洋領域的一項增量業務。但這很重要，因為它是人們希望擁有的船上的另一個組件，我們可以提供它，並且還可以與我們圍繞船的[音頻不清晰]系統整合。

In terms of just the strong kind of market share gains implied by your growth. When you look at the industry, obviously, it's been challenging. Like kind of a marine industry in general, looking into like the kind of medium term? And then what kind of underpins confidence in continued market share gains there?

就您的成長所帶來的強勁市場佔有率成長而言。當你審視這個行業時，顯然，它一直充滿挑戰。就像一般的海洋工業一樣，研究中期？那麼，什麼樣的因素可以支撐市場佔有率持續成長的信心呢？

Yes. I think in terms of the outlook, I think, again, this is somewhere where everyone will have an opinion. But it would seem to us that probably the market is fairly stable where it's at, probably don't see a lot of additional moves to the upside or downside. And as the economy and especially the interest rate environment improves, and I think people will obviously feel better about purchasing boats. In terms of our ability to take market share, I think we've been thrilled with our ability to do that across the whole range and especially as we enter new categories like our trolling motors, but in terms of sustained ability to do that, again, it gets more and more difficult as the market share grows.

是的。我認為就前景而言，我再次認為這是每個人都會有意見的地方。但在我們看來，市場可能相當穩定，可能不會出現太多額外的上行或下行走勢。隨著經濟尤其是利率環境的改善，我認為人們顯然會對購買船隻感覺更好。就我們佔領市場份額的能力而言，我認為我們對在整個產品範圍內做到這一點的能力感到非常興奮，特別是當我們進入拖釣馬達等新類別時，但就持續做到這一點的能力而言，再次，隨著市場份額的增長，它變得越來越困難。

And so we're concentrating on just creating great products and making sure that we can serve the customers that are out there.

因此，我們專注於創造出色的產品，並確保我們能夠為市場上的客戶提供服務。

George Wang, Barclays.

喬治王，巴克萊銀行。

Just 2 quick ones. So firstly, can you kind of double-click on the inventory kind of channel restocking. When I look at the balance sheet, inventory increased a lot sequentially to $1.5 billion. And can you just talk about kind of sell-through versus sell-in dynamic, especially as we head into the December quarter kind of holiday season. Just kind of how much is sort of different versus kind of the true end market demand?

就2個快的。首先，您可以雙擊庫存類型的通路補貨嗎？當我查看資產負債表時，庫存環比增加很多，達到 15 億美元。您能否談談銷售與銷售動態，特別是當我們進入 12 月季度的假期季節時。與真正的終端市場需求有多少不同？

Well, I think to start on the first question, George, our inventory is not related to channel inventory in any way. We're managing our own inventory to prepare for a higher selling season that's coming up in Q4. And I think we've mentioned over a few calls now that our inventory levels, while they've been down have probably been uncomfortably low. And so we've been working to improve those so that we can serve all the product needs. And I think you saw in our results here in Q3 that having more inventory definitely was a good thing because we were able to serve all of the orders that came our way.

好吧，我想從第一個問題開始，喬治，我們的庫存與渠道庫存沒有任何關係。我們正在管理自己的庫存，為第四季即將到來的更高銷售季節做好準備。我想我們已經在幾次電話中提到，我們的庫存水準雖然已經下降，但可能已經低得令人不安。因此，我們一直在努力改進這些，以便我們能夠滿足所有產品需求。我認為您從我們第三季的結果中看到，擁有更多庫存絕對是一件好事，因為我們能夠滿足所有收到的訂單。

In terms of sell-in versus sell-out, I would say that we have a very good ability to track customer activity and as they're buying our products and registering them. And so we're very pleased with the sell-out so far, especially with the new products like the fenix 8 and also the existing products that have been in the market a while such as the the [ 40265 ] and [ 965 ] as well as the vivoactive and venue series, all of them have very strong registration rates.

就銷售與銷售而言，我想說，我們有很好的能力來追蹤客戶活動以及他們購買我們的產品並註冊的情況。因此，我們對迄今為止的銷售情況感到非常滿意，尤其是像 fenix 8 這樣的新產品，以及已經上市一段時間的現有產品，例如 [ 40265 ] 和 [ 965 ] 。非常強勁的註冊率。

Okay. Great. Just a quick follow-up. I guess, in terms of margin profile for the auto OEM, given softer top line outlook for the auto OEM kind of some of your customers lowering guidance. Does it affect your medium-term outlook for the margin profile?

好的。偉大的。只是快速跟進。我想，就汽車原始設備製造商的利潤狀況而言，考慮到汽車原始設備製造商的收入前景疲軟，一些客戶降低了指導。這是否會影響您對利潤狀況的中期展望？

Obviously, you are getting close to profitability on the income side for the auto OEM later this year. So just curious, any change in thinking in terms of the medium outlook for the gross margin and operating margin for the auto segment?

顯然，今年稍後汽車原始設備製造商的收入方面將接近盈利。所以只是好奇，對於汽車業毛利率和營業利益率的中期前景的看法有什麼變化嗎？

Yes. I think for the most part, we would say the gross margin probably is not impacted, although product mix, depending on customer activity, it could be a factor there. But in general, we've said that it would be in that high teens to 20% kind of range for gross margin. With lower sales, of course, comes the concern that you don't have the ability to cover all the expenses in the segment on a fully loaded basis because of the lower sales volume. But that's unfortunate, but something we can't really do anything about because the automakers are the ultimate customer for this product.

是的。我認為在大多數情況下，我們會說毛利率可能不會受到影響，儘管產品組合（取決於客戶活動）可能是一個因素。但總的來說，我們說過毛利率將在十幾到 20% 的範圍內。當然，隨著銷售額的下降，人們會擔心，由於銷量下降，您無法在滿載的情況下支付該細分市場的所有費用。但這很不幸，但我們對此無能為力，因為汽車製造商是該產品的最終客戶。

And if their outlook is weakened, then of course, we have to respond to that.

如果他們的前景被削弱，那麼我們當然必須對此做出回應。

That concludes our question-and-answer session. I will now turn the call back over to Teri Seck for some final closing remarks.

我們的問答環節到此結束。現在，我將把電話轉回給泰瑞·塞克，讓其做最後的總結發言。

Thank you all for joining the call. Doug and I are available for callbacks and we hope you have a great rest of your day. Bye.

感謝大家加入通話。道格和我可以回電，希望您度過愉快的一天。再見。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。